EUR: Long Positioning Far From Elevated; A Buy On Dips – Credit Agricole

EUR/USD ended the week just under 1.10. Can it continue higher after the French elections[1]?

Here is their view, courtesy of eFXnews:

Credit Agricole FX Strategy Research believes that the EUR is facing a further but gradual appreciation trend especially after this week’s second round vote in the French presidential elections which likely to help further shift the focus back to growth and price data as a predominant currency driver.

Such a bullish EUR view, according to CACIB, is supported by speculative EUR long positioning which is far from elevated,regardless of the past two weeks’ constructive price action.

As a result we favour buying EUR dips as ultimately investors should also consider the risk of the ECB turning less dovish on monetary policy,” CACIB recommends.

In terms of next week’s data, CACIB notes that it will be relatively quiet in terms of market moving data releases.

EUR/USD is trading circa 1.0980 as of writing.

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